As mergers and acquisitions (M&A) accelerate around the world cybersecurity is more important than ever for companies. If confidential information is accidentally disclosed during M&A due-diligence, or during post-M&A activities, the stakes are high.
The good news is that the appropriate software can help M&A CISOs maintain the integrity of data, ensure compliance, and guard against the risks that come with M&A activities. The right data room solution integrates digital tools into one integrated platform that allows for simple uploads of files, a single sign-on, and a extensive auditing. This assists compliance teams to maintain control by making sure that they do not accidentally disclose information.
Virtual data rooms can be an effective tool to manage the M&A processes, from due diligence to post-M&A activities and integration. VDRs allow users with access to read, share, and comment on sensitive documents without risk of leakage. They also allow users to create activity reports that reveal who has read and accessed specific document pages. These reports will deter criminals from leaking information because they can trace them back to individual users. These reports can also help M&A CISOs to evaluate the level of interest from potential buyers or investors.
Many M&A deals are based on the value of intellectual property. Virtual data rooms are utilized by life science companies to handle everything from clinical trials to HIPAA compliance, from licensing IP to the storage of patient files. It is not unusual for companies to be asked to review and supply massive volumes of documents as part of M&A due-diligence. This can be a very labor-intensive and time-consuming task for both the company being purchased and the acquirer. A VDR lets you share this information safely and efficiently.
Regardless of the industry, M&A can data room provider be a complicated business process that can pose significant security risks. In the integration and operation phases of the M&A cycle the M&A team must understand the dangers that cybercriminals and rivals pose. These risks may include malware, unauthorised access to systems and networks and sabotage as well as other forms of disruption that can undermine the M&A value proposition.
M&A can turn into an enjoyable and profitable business venture if you use the appropriate cybersecurity solutions. M&A is a great chance for businesses to increase value and expand their international reach. Before any transaction can commence there must be an M&A focused cybersecurity strategy should be implemented to ensure the value of this deal is not compromised. Download our free guide Cybersecurity for M&A from the M&A Playbook to learn more. Todd Thiemann, director of product marketing at ReliaQuest GreyMatter is a Security Operations Platform which can make cybersecurity possible through M&A. It provides visibility, cuts through the multi-layered security stacks and manages risk and uncertainty to help your business achieve its goals.